By Daniel Oluwatobiloba Popoola
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has urged state governments to move away from dependence on federal allocations by strengthening internally generated revenue, attracting investments and creating jobs to build a more resilient Nigerian economy.
Oyedele made the call on Wednesday, 19 August, 2026, in Owerri, Imo State, at the ongoing 2026 National Council on Finance and Economic Development Retreat, themed, “Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy.”
The Minister said the retreat provided an opportunity to interrogate Nigeria’s current allocation and derivation principles while promoting greater fiscal responsibility, accountability and cooperation among the three tiers of government.
He maintained that Nigeria must transition from an allocation-dependent economy to one driven by production, investment and job creation, particularly in the face of economic shocks and changing global realities.
Oyedele explained that recent economic reforms, including the removal of fuel subsidy and the unification of the foreign exchange market, had significantly increased revenues available for distribution through the Federation Account.
He said monthly Federation Account allocations, which averaged between N300 billion and N600 billion before 2023, now exceeded N2 trillion.
The Minister noted that the Federation Account Allocation Committee distributed N2.8 trillion to the Federal, State and Local Governments in June 2026 alone.
However, he cautioned that increased allocations could not, by themselves, guarantee development, stressing that higher revenues must translate into improved infrastructure, human capital development, increased productivity and better public services.
He consequently urged state governments to strengthen their internally generated revenue, attract investments and create employment opportunities rather than rely heavily on federal allocations.
Oyedele also advocated prudent borrowing and greater transparency in public finance, warning governments against accumulating liabilities without credible repayment plans.
He urged participants at the retreat to promote an evidence-led discussion on fiscal federalism rather than a positional debate, while ensuring that the country’s fiscal framework evolves in response to changing economic realities.
The minister’s position was supported by the Imo State Governor, Hope Uzodimma, who was represented at the retreat by his Deputy, Chinyere Ekomaru.
Uzodimma said states must be empowered to generate more revenue and efficiently manage available resources, noting that continued dependence on oil revenue was no longer sustainable.
The governor thanked the Federal Government and organisers for choosing Imo as the host state and described the retreat’s theme as timely amid growing economic pressures globally.
He said his administration was working to make shared prosperity a reality through its 3R agenda, adding that the state had digitised revenue collection, blocked leakages and increased its internally generated revenue.
According to him, Imo had also invested in agriculture, the digital economy, tourism, power, education, small and medium-sized enterprises and infrastructure as part of efforts to create jobs and expand economic opportunities for its growing youth population.
Uzodimma urged participants to develop practical measures capable of deepening fiscal autonomy, improving revenue generation and promoting equity among Nigeria’s federating units.
Earlier, the Permanent Secretary, Special Duties, Federal Ministry of Finance, Mohammed Sanusi, said the retreat was taking place at a critical period when Nigeria was implementing major economic reforms aimed at strengthening macroeconomic stability and promoting sustainable development.
Sanusi said the gathering provided an important platform for policymakers and other stakeholders to evaluate issues affecting the nation’s economy and develop practical responses to emerging challenges.
The retreat was attended by the Chairman, Revenue Mobilisation, Allocation and Fiscal Commission, Dr Mohammed Shehu; the Accountant-General of the Federation, Dr Shamsudeen Ogunjimi; the Chairman, Forum of State Commissioners for Finance of Nigeria, Akintunde Oyebode; and the Executive Chairman of the Nigeria Revenue Service, Dr Zacch Adedeji, among others.
